Go First Case: Delhi High Court allows lessors to engage security to monitor aircraft

Go First

The Delhi High Court on October 12 permitted the lessors of the grounded airline Go First to engage security personnel to monitor their aircrafts engine and other parts.

The court also directed the airline's resolution professional (RP) to grant access to all the documents pertaining to the maintenance of aircraft, engines and airframes to the lessors in two weeks. The RP, however, will continue to maintain the aircraft.

The order was passed on lessors please seeking permission to maintain their aircraft. The case will now be heard on October 19.

The lessors have accused the RP of not maintaining the aircraft. DAE (SY 22) 13 Ireland alleged that the condition of the aircraft was deteriorating every time it inspected the planes.

DAE, which has leased two aircraft, alleged in its plea that RP was not giving it access to documents such as maintenance records, which were essential to determine if the planes were being maintained in an airworthy condition.

Other lessors such as BOC Aviation Ireland and ACG Aircraft Leasing, too, have also filed similar please. ACG Leasing has alleged that fan blades, escape slides and many critical parts were missing from at least two planes.

Another lessor has urged the court to direct Go First to replace "robbed" parts from its leased jets and allow it to appoint round-the-clock security to guard grounded aircraft.

The RP's lawyer questioned the conduct of the lessors for moving both the Delhi High Court as well as the National Company Law Tribunal (NCLT).

On May 10, the National Company Law Tribunal (NCLT) accepted the Go First, formerly GoAir, plea for insolvency.

The lessors moved the High Court against the Director General of Civil Aviation (DGCA) to deregister their aircraft. On July 5, the court permitted the lessors to inspect and carry out the maintenance work. A week later, a division bench modified the order, saying the leasing companies would only inspect the aircraft and the RP would take care of the maintenance.